What Would a Billionaire Do? (WWABD)

Posted: October 28, 2018 in Corporatism, Culture, Economics, Ethics, History, Outrage, Philanthropy
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The largest lottery jackpot ever (roughly $1.6 billion) was won last week by some lucky or unlucky soul, depending. The mainstream media promoted this possible windfall relentlessly, instructing everyone as possible winners the first steps to take with the winning ticket. It prompts the question, What Would a (sudden, new) Billionaire Do? with all that money, and many of us toyed with the prospect actively. The ruinous appeal is far too seductive to put out of mind entirely. Lottery winners, however, are not in the same class as the world’s billionaires, whose fortunes are closely associated with capitalist activity. Topping the list is Jeff Bezos of Amazon. The Walmart fortune deposits four Walton family members on the list, whose combined wealth exceeds even that of Bezos. Beyond conjecture what billionaires should or might do besides the billionaire challenge or purchasing land in New Zealand for boltholes to leave the rest of us behind, it’s worth pointing out how such extraordinary wealth was amassed in the first place, because it surely doesn’t happen passively.

Before Amazon and Walmart but well after the robber barons of the early 20th century, McDonald’s was the ubiquitous employer offering dead-end, entry-level jobs that churned through people (labor) before discarding them carelessly, all the while locking up profits the placard “millions [then billions] sold!” Its hallmark euphemism (still in use) is the McJob. After McDonald’s, Walmart was widely understood as the worst employer in the world in terms of transfer of obscene wealth to the top while rank-and-file workers struggle below the poverty line. Many Walmart employees are still so poorly compensated that they qualify for government assistance, which effectively functions as a government subsidy to Walmart. Walmart’s awful labor practices, disruption of local mom-and-pop economies, and notorious squeezing of suppliers by virtue of its sheer market volume established the template for others. For instance, employers emboldened by insecure or hostage labor adopt hard-line policies such as firing employees who fail to appear at work in the midst of a hurricane or closing franchise locations solely to disallow labor organizing. What Walmart pioneered Amazon has refined. Its fulfillment-center employees have been dubbed CamperForce for being made primarily of older people living in vans and campers and deprived of meaningful alternatives. Jessica Bruder’s new book Nomadland (2018), rather ironically though shamelessly and predictably sold by Amazon, provides sorry description, among other things, of how the plight of the disenfranchised is repackaged and sold back them. As a result of severe criticism (not stemming directly from the book), Amazon made news earlier this month by raising its minimum wage to $15 per hour, but it remains to be seen if offsetting cuts to benefits wipe out apparent labor gains.

These business practices are by no means limited to a few notoriously bad corporations or their billionaire owners. As reported by the Economic Policy Institute and elsewhere, income inequality has been rising for decades. The graph below shows that wage increases have been entirely disproportionate, rewarding the top 10 percent, top 1 percent, and top 0.1 percent at increasingly absurd levels compared to the remaining 90 percent.

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It’s a reverse Robin Hood situation: the rich taking from not just the poor but everyone and giving to themselves. Notably, trickle-down economics has been widely unmasked as a myth but nonetheless remains a firmly entrenched idea among those who see nothing wrong with, say, ridiculous CEO pay precisely because they hope to eventually be counted among those overcompensated CEOs (or lottery winners) and so preserve their illusory future wealth. Never mind that the entire economic system is tilted egregiously in favor a narrow class of predatory plutocrats. Actual economic results (minus all the rhetoric) demonstrate that as a function of late-stage capitalism, the ultrarich, having already harvested all the low-hanging fruit, has even gone after middle-class wealth as perhaps the last resource to plunder (besides the U.S. Treasury itself, which was looted with the last series of bailouts).

So what would a billionaire do in the face of this dynamic? Bezos is the new poster boy, a canonical example, and he shows no inclination to call into question the capitalist system that has rewarded him so handsomely. Even as he gives wage hikes, he takes away other compensation, keeping low-level employees in a perpetual state of doubt as to when they’ll finally lose what’s left to them before dying quietly in a van down by the river or out in the desert somewhere. Indeed, despite the admirable philanthropy of some billionaires (typically following many years of cutthroat activity to add that tenth and eleventh digit), structural change necessary to restore the middle class, secure the lower class with a living wage, and care for the long-term unemployed, permanently unemployable, and disabled (estimated to be at least 10% of the population) are nowhere on the horizon. Those in the best position to undertake such change just keep on building their wealth faster than everyone else, forsaking the society that enables them and withdrawing into armed compounds insulated from the rabble. Hardly a life most of us would desire if we knew in advance what a corrupting prison it turns out to be.

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